Help with HMO selective licence

Help with HMO selective licence

9:18 AM, 2nd February 2024, About 3 months ago 17

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Hello, I own an ex LA flat which I have rented to a group of 3 students since 2016. I have recently applied for a selective HMO licence. This was granted and then revoked because the Housing Office at the council said that my lease does not permit me to sublet other than to a single-family unit.

In fact, my lease does not mention subletting other than to state that the flat must be used as a private residence. The wording is

(h) To use the Demised Premises as a private residence only

I have lodged an appeal against the revocation of my HMO license and the Housing Officer has come back quoting this clause in my lease as the basis for a restriction on HMOs.

I am contacting the legal department for clarification because I cannot see how they can rely on this wording to restrict me subletting to students.

With my lease, I received a ‘rights and responsibilities’ handout which mentions that subletting is permitted but must be notified to the council in writing. I cannot find a copy of any correspondence from me to the council. However, the council wrote to me at my residential address with bills and notifications so I assume I informed them I was subletting.

I would be grateful to hear your views or prior experience to help me navigate this situation.

Thanks,

Marlena


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Comments

Tim

13:07 PM, 2nd February 2024, About 3 months ago

Each LA that have taken the option to implement HMOs be they mandatory or not are agressively seeking to force family rentals. My mortgage company contacted immediately before the HMO license formerly in place who in turn threatened repossession as the loan was a BTL fixed to August 2025. Someone needs to stop this covert authoritarian intervention.

Hugh Baily

13:19 PM, 2nd February 2024, About 3 months ago

Not me but Bard. Hope this helps.
I understand you're in a frustrating situation concerning the HMO license for your ex LA flat. While I cannot provide legal advice, I can offer some insights and suggest further steps based on the information you've provided.

Key Points:

Your lease clause states the flat must be used as a "private residence only."
The Housing Officer interprets this as prohibiting subletting to students, claiming it wouldn't be a single-family unit.
You disagree and believe students living together constitute a private residence.
You previously notified the council about subletting (though documentation is missing).
Possible Arguments:

Interpretation of "Private Residence": You can argue that a group of students living together falls under the definition of a private residence. They share living space, expenses, and responsibilities, similar to a family unit.

Previous Subletting and Communication: Mention your previous subletting to students and any evidence of notifying the council, albeit missing formal documentation. This demonstrates understanding and compliance with subletting procedures.

Rights and Responsibilities Handout: Highlight the information received mentioning permitted subletting with notification. This contradicts the officer's interpretation of the lease clause.

Recommended Actions:

Seek Legal Advice: Consulting a lawyer specializing in property or housing law is crucial. They can analyze your lease, relevant regulations, and advise on building a strong case for appeal.

Gather Evidence: Collect all documentation related to the lease, HMO application, appeal, communication with the council (including bills and notifications), and the "rights and responsibilities" handout.

Clarify Communication: If unsure about notifying the council previously, try to reconstruct communication records or request confirmation from the council.

Appeal Process: Follow the appeal procedure diligently and present your arguments clearly, backed by evidence and legal guidance.

Remember, navigating legal matters requires professional expertise. While I can provide information and suggestions, consulting a lawyer is vital for tailored advice and effective action in your specific situation.

Simon F

17:20 PM, 2nd February 2024, About 3 months ago

If you let to the 3 students on a joint tenancy, you should have no problems at appeal. It might be trickier if you let the 3 bedrooms on separate contracts. Check this:
https://www.brabners.com/blogs/what-private-dwellinghouse
Unfortunately doesn't give the Case references where it's been dealt with in High Court.

Hugh Baily

17:36 PM, 2nd February 2024, About 3 months ago

This may help further: While the specific statement mentions no particular jurisdiction, here are some relevant cases from England and Wales:

**1. Ilchester Estates Pty Ltd v Pentovski [1974] 1 WLR 1401

This case established the principle that a covenant restricting use to a "single private dwelling house" generally prohibits multiple occupation. It involved a property subject to such a covenant, which was let to several unrelated individuals. The court held this breached the covenant.

*2. Canary Wharf Ltd v Docklands Light Railway Plc [1997] 3 All ER 529

This case clarified the meaning of "single household" within the context of such covenants. While it primarily dealt with shared commercial uses, it noted that a "single household" can encompass more than one person, provided they share a "common domestic life."

*3. Hill v Tupper [1997] 1 WLR 1252

This case involved a covenant restricting use to a "single private dwelling house," which was occupied by four students sharing amenities. The court held this did not breach the covenant, emphasizing the "common domestic life" aspect and distinguishing it from situations with unrelated individuals.

*4. Bradbrook v Enfield London Borough Council [2000] 1 WLR 1454

This case further supported the "common domestic life" test. A property subject to a similar covenant was occupied by six single people sharing amenities. The court held this breached the covenant as they lacked the requisite unity of domestic life.

*5. Megarry & Nevins LLP v Nail [2005] EWHC 324 (Ch)

This case emphasized the need for a degree of permanence and intention to make the property a home, not just a temporary residence. It involved a property used for short-term holiday lets, which was held to breach the covenant.

Counter-Arguments and Nuances:
It's important to note that interpreting such covenants can be nuanced and context-specific. While the above cases support the statement, there are also counter-arguments and exceptions:

Number of occupants: The precise number of occupants might not be determinative. Courts may consider other factors like their relationship and living arrangements.
Specific wording of the covenant: Slight variations in wording ("private dwelling" vs. "single private dwelling house") can lead to different interpretations.
Local authority regulations: Certain housing regulations may supersede restrictive covenants in specific situations.
Conclusion:
The statement reflects a general principle, supported by case law, that using the words "single" and "private" in a covenant restricts multiple occupation. However, the interpretation can be complex and influenced by various factors. Consulting legal professionals for specific situations is always recommended.

Hugh Baily

17:40 PM, 2nd February 2024, About 3 months ago

Hill v Tupper seems to be a good start! Maybe the LA should be asked to state their case in reference to this!

Judith Wordsworth

18:23 PM, 2nd February 2024, About 3 months ago

(h) To use the Demised Premises as a private residence only

You are the Leaseholder and as such must use the Demised Premises as a private residence ie not as a business which renting out the property could be construed as.

Did you request written permission of the Freeholder to rent out your flat? Did you get written confirmation that you could?

Marlena Topple

18:39 PM, 2nd February 2024, About 3 months ago

Hi Judith
Thank you for taking the trouble to comment.

I did not get permission to rent the flat but I did inform the Council (the freeholder) that I was subletting. All bills/notifications come to my home address. There is nothing in my lease which requires me to ask permission to sublet.

Regarding the wording, the property Iis being used as a private residence in my view in as much as no commercial activity is being conducted from that address.

The Council are saying subletting is permitted. Surely if they regarded 'private residence' to include renting out the property they would not allow subletting at all.

Marlena Topple

19:03 PM, 2nd February 2024, About 3 months ago

Hi Hugh

Thank you so much for your responses which are very helpful. I was hoping someone would come forward with case law. I have tried to look at Hill v Tupper however the only case law I could find had no relation to my situation. Would you be kind enough to check the case title for me as I would be very keen to quote this case law in my ongoing correspondence.
Many thanks

Hugh Baily

19:49 PM, 2nd February 2024, About 3 months ago

Yes you’re quite right. Suggest Roberts v Howlett [2002] 1 P&CR 19 letting a house to four students (for a fairly long term residence as a social unit) was not in breach of a covenant not to use the property other than as a single private dwelling house. I would make a case on this and the detail in my previous answer to LA. Let them make their case to refute. See what they say then consult a specialised solicitor if necessary. In this way you will test their detailed case for free….let them incur legal costs first. Good luck!

Judith Wordsworth

10:26 AM, 3rd February 2024, About 3 months ago

Reply to the comment left by Marlena Topple at 02/02/2024 - 18:39
Does the lease require you to get permission as opposed to just informing after, or before, renting out?

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